What is 'Use of Proceeds' w.r.t Startups?

Use of Proceeds is a term used in Startup deal flow. It includes a breakdown of how the money will be spent and what it will allow you to accomplish. Angel Investors (or) VCs will definitely ask this question to start-ups as they want to know, that their money is being put to good use in order to directly accelerate the business opportunity, so that they will receive their ROI(return on investment) in a timely fashion.

Image- Example of Use of Proceeds Statement

Tags: Use of proceeds in startups, Angels ask for use of proceeds, planned use of proceeds, how money spent a breakdown, ROI startups


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